Shares pushed higher this morning as strength in the big banks helped offset worrying trade figures.
At lunchtime the ASX 200 was up 15 points or 0.33% at 4494, led by momentum in the financial sector after ANZ's well-received profit yesterday. Financials rose 0.6%, along with telecoms +0.7%, consumer staples +0.9% and miners +0.2%.
But there were mixed signs for the economy as a doubling in the trade deficit in the June quarter had to be weighed against a surge in building approvals in July. The trade figures are expected to slash expected growth in second-quarter GDP to just 0.1%, from 0.4% growth in the first quarter, and may even tip the economy into contraction again.
Asian markets were generally stronger in morning trade. Japan rose 0.46% and Hong Kong added 0.4% but Shanghai dipped into the red in the last hour, recently trading at -0.05%. Dow futures were recently at +9. Crude oil futures rallied to $70.07.
Been a mixed morning here. Caught some of the run on MMR and a bounce in MPO but bought the PIO retrace too early. Added MFI at support. Exited PBT for brokerage - still like the set-up but will wait for a breakout to re-enter.
Potential overnight holds: Both MMR and BUY could have legs tomorrow. BBI also looks ripe. SRL looks like completing a quick saucer bottom after yesterday's profit report (I hold). URL looking good on breakout. MCR might be putting in a double pincer bottom.
